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Home healthcare industry braces for another Medicare cut

Modern Healthcare reports on the impact of Medicare home health cuts proposed for 2017. Quoting HCA, the report notes that “New York Medicare-certified providers have been operating at a loss on Medicare payments for several years in a row, said Roger Noyes, a spokesman for the Home Care Association of New York State. Noyes said 60% of New York agencies have reported having to reduce staff or cut other costs to function, and half have used a line of credit or borrowed money for operating expenses over the last two years … He said the reimbursement cuts haven’t fully accounted for regional variations, such as higher wages for workers and high concentrations of hospital-based certified agencies and dual-eligibles in some areas of the country. Some New York agencies have had to close, Noyes said, while others have cut staffing or are looking at consolidating.”